Chinese tech giant Tencent Holdings is laying the groundwork for what many see as the next frontier of artificial intelligence by investing in “world models” that simulate the physical environment, according to its head of 3D generation and world modelling. China’s most valuable tech conglomerate joins a fast-growing cohort that includes Google DeepMind and Elon Musk’s xAI in exploring “spatial intelligence”, which some experts have described as “AI’s next great frontier”. On Wednesday, AI...